Billing's Pit Corporation Has an Accounts Receivable Turnover Ratio of 3.4

question 94

Multiple Choice

Billing's Pit Corporation has an accounts receivable turnover ratio of 3.4. What is Billing's Pit Corporation's average collection period?

• A) 107 days
• B) 102 days
• C) 73 days
• D) 55 days

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Definitions:

Aggregate Demand Curve

The total demand curve illustrates the overall volume of goods and services the economy requires at various price points.

Investment Demand Curve

A graph showing the relationship between the rate of interest and the total amount of investment demanded by all sectors in the economy.

Market Interest Rate

The prevailing rate at which borrowers can secure loans and lenders receive returns, determined by supply and demand in the money market.

Autonomous Spending

Spending that does not depend on the current level of national income or output, such as investments, government spending, and exports.